MUFG has recently signed, the JOLCO financing of three A321-200 neo aircraft for European Ultra Low-Cost carrier Wizz Air. The deal is secured against one of the most fuel-efficient aircraft in the market today. On average the new technology aircraft provides around 15 percent more fuel savings in comparison to its predecessor.

MUFG's aviation finance team provided a holistic solution, acting as MLA, FX counterparty, facility agent, security trustee, and account bank on the transaction. The club of banks in the deal include BNP Paribas and the Development Bank of Japan.

The deal was the first MUFG transaction ever completed with Wizz Air, adding the largest ultra-low-cost carrier (ULCC) in Central and Eastern Europe to its aviation portfolio. Wizz Air continues to maintain the lowest unit cost in Europe, driven by one of the highest labour productivity and aircraft utilization ratios and by operating a very young fleet. During the COVID-19 pandemic, the airline has been leveraging its unique position in the market to continue to invest in network expansion and fleet upgrades.

The A321-200neo is considered to be one of the most liquid aircraft in the market, attracting a lot of interest from investors and leasing companies. By the end of the decade, Wizz Air should have a fleet of 500 aircraft, with the A321neo being its core asset. Already Wizz Air is considered to be the most sustainable airline in Europe, having sustainability goals to reduce C02 emissions per passenger kilometer by 25% by 2030. The addition of these aircraft will allow the airline to continue to hold this title.

It fits with the strategy of MUFG to provide cutting-edge financing solutions to help clients meet their carbon-emission reduction targets and sustainability goals.

Tye Holmes, EMEA regional head, commented:

"We are proud, to have signed our first transaction with Wizz Air, and pleased to be able to help a leading ULCC with its continued fleet growth and sustainability targets by taking delivery of these A321neos."

Owain Jones, Chief Supply Chain and Legal Officer at Wizz Air said:

"Wizz Air is famous for being the most sustainable airline in Europe, operating one of the youngest fleets in the world.

"Signing the JOLCO financing transaction with MUFG for three more gamechanging Airbus A321NEOs, the most environmentally friendly aircraft flying, helps us maintain our super-efficient operating model and bring ever more low fare flights for our customers."